As we continue to make our way through earnings season, we have been seeing our fair share of positive and negative reports. And this past week that included some of the big tech flagships: Alphabet Inc. (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT).
And as I discussed in last Friday’s Market 360, big earnings misses from Alphabet, Amazon and Meta Platforms triggered huge selloffs in the stocks. Apple’s shares were the only ones to rally after the company reported record sales and net income.
So it should come as no shock that my Portfolio Grader also punished GOOG, AMZN and META, downgrading GOOG and AMZN from C-ratings (Holds) to D-ratings (Sells). META was revised from a D-rating to an F-rating (Strong Sell) – the lowest rating a stock can get in Portfolio Grader!
Remember: A company must have strong fundamentals to earn Buy rating in my system. That’s clearly not the case with some of these tech flagships.
Of course, these tech companies weren’t the only stocks whose ratings were revised lower. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health in Portfolio Grader on 113 blue chip stocks over the weekend, 25 stocks were downgraded from a Hold to a Sell and another 23 stocks were downgraded from a Buy (B-rating) to a Hold.
I’ve included the first 10 stocks that were downgraded from a Hold to a Sell below, but you can click here to find the full list of 113 stocks – including their Fundamental Grade and Quantitative Grade. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
|Ticker||Company Name||Total Grade|
|CPT||Camden Property Trust||D|
|DIS||Walt Disney Company||D|
|EW||Edwards Lifesciences Corporation||D|
|GOOG||Alphabet Inc. Class C||D|
|GOOGL||Alphabet Inc. Class A||D|
|JD||JD.com, Inc. Sponsored ADR Class A||D|
Again, I firmly believe that energy stocks remain an investor’s best bet.
The reality is energy earnings should remain high going forward, especially as demand for energy goes up in the spring – when seasonal demand naturally increases. By then, crude oil could reach $120 per barrel.
This is why I’ve been spending the past year loading up on energy stocks in Growth Investor. I want to ensure that we’re invested in the companies that will profit from the high energy demand and institutional buying pressure. These stocks are an oasis for investors seeking steady sales and earnings growth.
If you want to position your portfolio for big profits, become a member of Growth Investor. I released my Growth Investor Monthly Issue for November last Friday, which included a brand-new energy stock that offers the perfect blend of income and growth, as well as my latest Top Stocks list. If you join me at Growth Investor today, you’ll be able to invest in these names while they still trade below my buy limits.
P.S. In the next few days, I will release a special briefing on my latest quantitative project. I’ve been sharpening my stock-picking system for more than 40 years, and I can’t wait to show you my latest breakthrough.
More details will be coming soon … so keep an eye on your email. You won’t want to miss what is coming next!
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Amazon.com, Inc. (AMZN), Walt Disney Company (DIS), Alphabet Inc. Class C (GOOG), Meta Platforms, Inc. (META) and Microsoft Corp. (MSFT)